Walmart CEO Doug McMillon said that deflation could be coming in time for the holiday season as key grocery items like eggs, chicken, and seafood get cheaper, reports CNBC. He added that general merchandise items are also feeling economic relief.
In the coming weeks and months, Walmart expects the cost of high-priced pantry staples to start coming down, he said.
“In the U.S., we may be managing through a period of deflation in the months to come,” he said on the company’s Thursday earnings call. “And while that would put more unit pressure on us, we welcome it, because it’s better for our customers.”
Other retailers, along with the U.S. government, agree with McMillon.
The Labor Department said Tuesday that inflation was flat month over month in October. The American Farm Bureau Federation also revealed that Thanksgiving will be cheaper for Americans, largely thanks to turkey prices. The group found the average dinner for 10 people will be $61.17, down 4.5 percent from the year before.
Despite the easing economic environment, groceries remain up by a single-digit margin compared to last year.
“The pockets of disinflation we are seeing are helping, but we like to see more, faster,” said McMillon. Full Story
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